SAF-Holland SE · XETR:SFQ
SAF-Holland — Q2 2017 Earnings Presentation
28 slides from SAF-Holland's earnings presentation, Aug 10, 2017
Slide 1: Strategy 2020 - Moving Ahead: Q2 2017 Results
Strategy 2020 - Moving Ahead Q2 2017 Results Detlef Borghardt, CEO Dr. Matthias Heiden, CFO August 10, 2017
Slide 2: Agenda
Agenda Business Summary Q2 2017 Market Update Financials Market forecast and Company Outlook 2
Slide 3: Business Summary Q2 2017
= Business Summary Q2 2017 SF /olland)
Slide 4: Business Summary Q2 2017
Business Summary Q2 2017 Solid organic top line growth driven by all regions in still challenging market environment, e.g. featuring lower truck and trailer production figures throughout first 6-months 2017 in North America Q2 sales growth of 9.7% reaching a record quarterly sales level of € 300
Slide 5: Market Update
= Market Update Sb /tolland
Slide 6: Trailer market trend North America
Trailer market trend North America Trailer net orders 50000 40000 30000 20000 10000 0 July Aug. Sep. Oct. Nov. Dec. Jan. Feb. March April May June 2015 20400 23500 34700 32200 39300 25500 27300 20400 22000 17700 15200 26700 2016 9482 14031 11746 20158 35790 34060 17649 21360 13789 15840 13302 11931
Slide 7: Heavy truck market trend North America
Heavy truck market trend North America Class-8 net orders 50000 40000 30000 20000 10000 0 July Aug. Sep. Oct. Nov. Dec. Jan. Feb. March April May June 2014 29516 24947 24477 45795 40560 43620 34403 28876 27139 24115 25605 26255 2015 23811 18926 19235 25749 16388 27660 34984 30838 24918 22044 20021 1
Slide 8: Heavy truck market EU
Heavy truck market EU New registrations HCV >16 tons 40000 30000 20000 10000 0 July Aug Sep Oct Nov Dec Jan Feb March April May June 2014 17523 13019 20732 26768 17921 17031 17117 15894 19267 17838 17078 17597 2015 21865 15516 25171 28529 22431 20839 18564 17234 24798 21653 20633 23126 2016 22394 18
Slide 9: Financials
= Financials Sb /tolland
Slide 10: Group sales and group adjusted EBIT by quarter
Group sales and group adjusted EBIT by quarter Sales in €mn Adj. EBIT in €mn 400 35 14% 350 30 300.3 26.9 26.7 12% 300 287.7 287.3 26.3 271.0 273.7 25.1 258.8 259.9 25 24.1 255.8 252.6 22.6 22.7 243.2 21.6 10% 250 20.4 19.8 20 9.4% 9.3% 9.6% 200 8.4% 8.7% 8.4% 8.7% 8.9% 8% 8.3% 7.8% 15 150 6% 10 4%
Slide 11: Sales split Q2 2017 by channel and region
Sales split Q2 2017 by channel and region in € mn 300.0 250.0 227.5 202.1 200.0 159.6 152.0 150.0 116.8 104.8 100.0 71.6 72.8 50.0 16.9 23.9 0.0 OE business Aftermarket EMEA/I Americas APAC/China business Q2 2016 Q2 2017 Q2 2017 sales growth driven by both the OE (+12.6% yoy) and AM (+1.6% yoy) busi
Slide 12: Business performance by region – EMEA/I: Solid organic growth continues
Business performance by region – EMEA/I: Solid organic growth continues Sales in €mn Summary 200 Q2 sales growth of 5.0% to € 159.6 (152.0) mn. On a 152.0 159.6 currency-adjusted basis: +4.3% yoy Solid growth in Southern Europe, e.g. in Italy and Spain, 100 as well as in various Eastern European
Slide 13: Business performance by region – Americas: Outperforming the market
Business performance by region – Americas: Outperforming the market Sales in €mn Summary 200 Despite divergent market segment trends in Q2 – class-8 production up 4% on weak comparables, trailer production 116.8 fell 3% – SAFH achieved sales growth of 11.5% 104.8 100 After adjustment for positiv
Slide 14: Business performance by region – APAC/China: Sales picking up
Business performance by region – APAC/ China: Sales picking up at improved profitability levels Sales in €mn Summary 30 Strong sales increase in Q2 2017 of 41.5% to € 23.9 mn, 23.9 on a currency-adjusted basis 41.9% 20 16.9 Key driver again was the growing business with trailer components in Chi
Slide 15: Group Gross Profit by quarter
Group Gross Profit by quarter Gross profit in €mn Margin analysis for Q2 2017 70 40% 60 57.7 57.2 + 56.1 55.0 51.0 53.2 Volume 50.2 30% 48.7 48.5 50 - 44.0 Raw Materials 40 30 18.8% 20.1% 19.4% 18.1% 20.5% 20.5% 19.0% 19.2% 19.9% 18.3% 20% Product Mix - 20 10% Restructuring Cost - 10 Exchange Rate +
Slide 16: Group adjusted EBIT by quarter
Group adjusted EBIT by quarter Adjusted EBIT in €mn 30 16% 26.9 26.3 26.7 25.1 24.1 22.6 22.7 21.6 12% 20.4 19.8 20 9.4% 9.3% 9.6% 8.7% 8.7% 8.9% 8% 8.3% 8.4% 8.4% 7.8% 10 4% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 2017 The Q2 17 adjusted EBIT increased sequentially and yoy. The adjusted EBIT m
Slide 17: Reconciliation EBIT to adjusted EBIT Q2 2017
Reconciliation EBIT to adjusted EBIT Q2 2017 in € mn 40 26.7 30 4.8 20.6 1.3 20 10 0 EBIT Depreciation and Restructuring and Adjusted EBIT amortization from PPA transaction costs Excl. restructuring and transaction costs totaling € 4.8 (1.3) mn and PPA of € 1.3 mn (1.2), the adjusted EBIT amounted t
Slide 18: From EBIT to Net income Q2 2017
From EBIT to Net income Q2 2017 in € mn 30 20.6 20 3.9 5.0 11.8 10 0 EBIT Finance result Income taxes Net income As a result of the restructuring-cost impacted clean EBIT of € 20.6 (23.8) mn combined with higher net finance cost of € 3.9 mn (Q2 2016: € 2.0 mn), despite lower Group tax rate (29.6% vs
Slide 19: Restructuring impact on basic EPS versus stronger adjusted EPS
Restructuring impact on basic EPS versus stronger adjusted EPS in € 0.50 0.40 0.38 0.35 0.32 0.30 0.26 0.20 0.10 0.00 Basic earnings per share Adjusted basic earnings per share Q2 2016 Q2 2017 Based on an unchanged number of 45.4 mn shares outstanding, basic EPS reached € 0.26 (Q2 16: € 0.32). Adjus
Slide 20: Inventories and Net Working Capital
Inventories and Net Working Capital Inventories in € mn and days of inventories Summary 180 75 Inventories increased in parallel to sales growth to € 160 135.9 136.7 145.7 138.9 138.9 mn (Dec. 31, 2016: € 131.0 mn) 140 125.6 127.2 123.7 124.6 131.0 65 120 118.0 Succesful € 6.8 mn reduction in in
Slide 21: Net working capital effects Q2 2017
Net working capital effects Q2 2017 Due to high customer demand the strong sales development in Q1 2017 continued in Q2 2017 despite 3 working days less Unusually high share of June sales results in payment-terms related increase in trade receivables Sales in € mn 120 Q1 2017 Q2 2017 115 110 107
Slide 22: Free cash flow by quarter
Free cash flow by quarter in € mn 40 29.3 30 26.3 19.4 20 17.5 13.0 10 7.5 6.1 0 -2.4 -6.4 -15.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -10 -20 2015 2016 2017 Due to improved NWC, free cash flow (net cash flow from operating activities less investments in PPE and intangible assets, pre-dividend) sequentially
Slide 23: Net debt at € 135 mn - Equity ratio reflecting strong cash
Net debt at € 135 mn - Equity ratio reflecting strong cash Net debt Equity ratio in € mn 97.1* 135.4* 500 400 300 30.1% 200 441.7 439.5 28.5% 100 0 -100 -344.6 -304.0 -200 -300 -400 December 31, 2016 June 30, 2017 December 31, 2016 June 30, 2017 Cash debt * Net debt taking into account cash and cash
Slide 24: Market Forecast and Company Outlook
Market Forecast and Company Outlook 24
Slide 25: Market Forecast 2017
Market Forecast 2017 Global trailer forecast in thousand Change in Change Share in group 2014 2015 2016 % yoy 2017 in % yoy sales FY16* ACT N.A. Trailer Shipments1) 296 334 313 -6.4 300 -4.0 North America approx. 20% FTR N.A. Trailer Build2) 292 331 309 -6.6 301 -2.8 Change in Change Share in group
Slide 26: Outlook: Financial targets 2017
Outlook: Financial targets 2017 – Following a strong H1, sales now expected to tend towards the upper end of guidance range FY 2017* Strategy 2020 Tending to the upper end of the range of Organic: € 1,250 mn € 1,060 mn to € 1,090 mn Sales Assuming stable FX rates and + Coops., JVs, acquisitions: unc
Slide 27: Disclaimer
Disclaimer Not for general release, publication or distribution in the United States, Australia, Canada or Japan. By attending this presentation you agree to be bound by the following limitations: This presentation has been prepared by SAF-HOLLAND S.A. (“SAF-HOLLAND”) and comprises written materials
Slide 28: Investor Relations
Investor Relations SAF-HOLLAND GmbH Stephan Haas Hauptstraße 26 63856 Bessenbach Phone +49 6095 301-617 Telefax +49 6095 301-102 Mobile +49 170 306 64 97 Stephan.Haas@safholland.de www.safholland.com 28